Terramin Australia Limited · ASX:TZN
Terramin Australia — Investor Presentation (October 2011)
28 slides from Terramin Australia's investor presentation, Oct 21, 2011
Slide 1: Terramin Australia Limited Investor Presentation October 2011
TERRAMIN AUSTRALIA LIMITED For personal use only Investor Presentation October 2011
Slide 2: Disclaimer
Disclaimer For personal use only No representation or warranty is or will be made by any person (including Terramin Australia Limited ACN 062 576238 (Terramin) and its officers, directors, employees, advisers and agents) in relation to the accuracy or completeness of all or part of this document (th
Slide 3: Competent Person Statement
Competent Person Statement For personal use only The information in this report that relates to Exploration Results is based on information compiled by Mr Eric Whittaker. The information that relates to Mineral Resources for Menninnie Dam and Tala Hamza is based on information compiled by Mr Robert
Slide 4: Terramin Australia Limited: a low zinc cost producer with a world class project
Terramin Australia Limited For personal use only …a low zinc cost producer with a world class project 3 billion pounds of zinc in low cost (32c/lb) ore reserve All projects close to infrastructure with low capex benefits 4Mtpa Tala Hamza lead-zinc project ready to permit 400,000tpa Angas Zin
Slide 5: Projects
Projects For personal use only Oued Amizour & Tala Hamza Menninnie Zinc Project Angas Zinc Mine & Fleurieu ELs TERRAMIN AUSTRALIA LIMITED SLIDE No. 5
Slide 6: Company Overview, Operations, Zinc Market Overview, Outlook
For personal use only Company Overview Operations Zinc Market Overview Outlook TERRAMIN AUSTRALIA LIMITED SLIDE No. 6
Slide 7: Fast facts
Fast facts For personal use only 1993 - Terramin was incorporated as Playford ASX Listed - Market Capitalisation: ~$30m Resources NL Shares on Issue: 190.3m and 6.6m Options 1997 – Terramin acquired the Fleurieu project in Adelaide including the Angas lead, zinc and sliver Employees ~200 r
Slide 8: Management
Management For personal use only Strong management team with commercial and technical expertise Nic Clift Managing Director Finance & Commercial Tala Hamza Angas Geology John Burgess TBC Mark Terry Robert Howie GM – Tala Hamza General Manager, Chief Financial Officer GM – Angas Zinc Mine Project Exp
Slide 9: Financials: 2010 Financial Year Highlights
Financials For personal use only 2010 Financial Year Highlights Angas Revenue and EBITDA ($’m) 70 25 Angas revenue from operations - $59.5m 60 20 50 40 15 Angas EBITDA - $17.0m 30 10 20 Cash flow from operations - $12.9m 5 10 0 0 2008 2009 2010 Cash balance at 30 June 2011 - $9.6m Revenue [L
Slide 10: Company Overview, Operations, Zinc Market Overview, Outlook
For personal use only Company Overview Operations Zinc Market Overview Outlook TERRAMIN AUSTRALIA LIMITED SLIDE No. 10
Slide 11: Oued Amizour Zinc Project - Algeria
Oued Amizour Zinc Project - Algeria For personal use only 65% Terramin : 35% Government Companies Location Infrastructure deep water port international airport plentiful water on lease Workforce proximity to city local universities high unemployment iron and zinc mining history
Slide 12: Project ranking
Project ranking For personal use only Tala Hamza in the top ten zinc mines.... Zinc Mine Output (Zn Metal ‘000tpa) – Total forecast zinc production ‘2011 – 13.61mt 700 Based on 2010 production 600 2015 Continuing mines 500 Mine closures by 2015 400 2013 300 2014 2015 200 100 - Rampura Red Dog Centur
Slide 13: The Block Caving Method
The Block Caving Method For personal use only The Definitive Feasibility Study completed on Tala Hamza concluded that… Block caving is the most viable method of mining for Tala Hamza; and The primary factor in determining the mining method was geotechnical conditions... Extremely weak orebody do
Slide 14: Tala Hamza Block Cave
Tala Hamza Block Cave For personal use only 250 metres Mineral Resource Ventilation shaft Measured, Indicated and MEASURED & INDICATED Inferred RESOURCE 68.6 Mt at 4.6% Zn, 1.1% Pb Undercut level Extraction level Access and waste trucking decline Ore Reserve Ore conveyor Probable incline Ore Passes
Slide 15: Production profile
Production profile For personal use only First concentrate production is scheduled for the fourth quarter of 2016 – however advanced roadheader studies and design variations could save at least a year of development time Output from the mine and plant will quickly ramp up to 4Mtpa with peak zinc
Slide 16: Low Operating costs
Low Operating costs For personal use only One of the most compelling features of the project is the low operating cost which is due to the block cave mining method, the scale of the processing plant and location close to infrastructure The estimated C1 cash cost of US32.1cents /lb are due to low
Slide 17: Capital Funding Requirement
Capital Funding Requirement For personal use only Terramin Funding Profile for Tala Hamza Project (US$’m) 200 160 120 80 40 0 2011 2012 2013 2014 2015 2016 Total Terramin Commitment 8 11 14 31 28 21 113 Other Funding 32 46 58 129 116 86 467 Competitive capital cost - US$580 million for 4Mtpa mine
Slide 18: Tala Hamza – Status and Milestones
Tala Hamza – Status and Milestones For personal use only 1. JV partner has received its consultants report – currently being reviewed 2. Once reviewed, report to be forwarded to Terramin for response 3. Workshops held to resolve issues raised in the review 4. JV company WMZ moves decision to mine 5.
Slide 19: Angas Zinc Mine – South Australia
Angas Zinc Mine – South Australia For personal use only Angas Zinc Mine Production from 2008 Current mine life 2014 Fleurieu Licences 1,000km2 Cu-Au and Pb-Zn prospects could provide ore for Angas mill Nearby Cu-Au mine TERRAMIN AUSTRALIA LIMITED SLIDE No. 19
Slide 20: Angas Zinc Mine Operation
Angas Zinc Mine Operation For personal use only Concentrate Produced and Ore Treated (‘000t) 50 450 400 40 350 300 30 250 400,000tpa operation producing zinc and 20 200 lead-copper-silver-gold concentrates 150 100 10 50 - - 2008 2009 2010 2011FC De-risked – fully developed by 2012 - major Zinc c
Slide 21: Angas Zinc Mine Operation
Angas Zinc Mine Operation For personal use only Sunter Garwood Rankine Exciting near mine potential – zones of high grade mineralisation within close proximity to existing mining operations Prospective zone for Rankine type Life of mine off-take agreements for zinc and lead concentrates Potent
Slide 22: Menninnie – Strong Foundation
Menninnie – Strong Foundation For personal use only Menninnie Central Zone - Inferred Resource of 7.7Mt @ 3.1% Zn and 2.6% Pb, and 27g/t Ag (March 2011) 160km from Pt Pirie lead smelter High lead/zinc ratio Further prospective targets identified with drilling planned 1,609km2 tenement hold
Slide 23: Menninnie – Ready to Move
Menninnie – Ready to Move For personal use only Extensions to Menninnie Central and three larger undrilled targets TERRAMIN AUSTRALIA LIMITED SLIDE No. 23
Slide 24: Company Overview, Operations, Zinc Market Overview
For personal use only Company Overview Operations Zinc Market Overview TERRAMIN AUSTRALIA LIMITED SLIDE No. 24
Slide 25: Zinc Market Outlook
Zinc Market Outlook For personal use only Forecast Zinc market supply imbalance to increase prices… Zinc implied surplus/(deficit) ‘000 mt LME Zinc cash price US$/lb 600 1.60 400 1.40 200 1.20 0 1.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0.80 (200) 0.60 (400) Price Lift 0.40 (600) D
Slide 26: Zinc Price and Terramin EV Correlation
Zinc Price and Terramin EV Correlation For personal use only Enterprise Value ($’m) and Zinc Price (AUD) Correlation 400 5,000 There is a strong 350 4,500 correlation 4,000 between the zinc 300 3,500 price and the 250 enterprise value of 3,000 Terramin 200 2,500 2,000 With the medium 150 1,500 t
Slide 27: Capability for Further Growth
Capability for Further Growth For personal use only Angas Zinc Mine - South Australia (100%) 400Ktpa operation developed on time and budget Major cash flow generator to 2015 at prevailing prices Development and operating capability Tala Hamza Zinc Project – Algeria (65%) DFS completed, d
Slide 28: Terramin Australia Limited
TERRAMIN AUSTRALIA LIMITED For personal use only Investor Presentation October 2011
Terramin Australia — Investor Presentation (October 2011) on 6ix